CapitaMall Trust Q3 DPU rises to 2.42 cents | CMT

Business Times: Wed, Oct 19
CAPITAMALL Trust (CMT) – which owns Tampines Mall, Junction 8 and Funan DigitaLife Mall, among others – saw its distribution per unit (DPU) for the September quarter grow to 2.42 cents, from 2.36 cents the year before. This works out to an annualis…
CAPITAMALL Trust (CMT) – which owns Tampines Mall, Junction 8 and Funan DigitaLife Mall, among others – saw its distribution per unit (DPU) for the September quarter grow to 2.42 cents, from 2.36 cents the year before.

This works out to an annualised distribution yield of 5.08 per cent, based on CMT’s closing price of $1.89 per unit on Oct 17.

CapitaMall Trust Management (CMTM), CMT’s manager, said the book closure date will be Oct 27, and that unitholders can expect to receive their September-quarter DPU on Nov 29.

CMT’s net property income had risen to $107.4 million for the third quarter ended Sept 30, 2011, from $101.2 million for the year-ago period.

Its gross revenue grew 7.4 per cent year on year to $159.2 million. Its distributable income to unitholders was $77.4 million, up 2.6 per cent from the year-ago period.

For the first nine months of the year, CMT’s DPU amounted to 7.07 cents, up from 6.88 cents for the January-September 2010 period.

CMTM chairman James Koh Cher Siang said: ‘We are pleased that CMT has delivered better results for 3Q 2011 due to improved performance and also additional contributions from Iluma (a shopping centre in Bugis) which was acquired on April 1, 2011.

Although consumer sentiment in Singapore presently remains healthy, we are cautious about Singapore’s economic outlook given the worsening economic situation in the US and Europe. Notwithstanding this, CMT’s portfolio of predominantly necessity shopping malls has, in the past, proven its resilience during the global financial crisis.’

CMTM is planning asset enhancement works for Iluma, which will begin next month. When these are complete, the net lettable area of the property will be increased by approximately 9,000 sq ft to 194,306 sq ft, and changes will also be made to the layout to improve traffic circulation within the mall, CMTM said.

CMTM CEO Simon Ho said of this and other asset enhancement works planned: ‘We will continue to focus on actively managing our existing portfolio to drive organic growth and executing our current asset enhancement initiatives in JCube (formerly known as the Jurong Entertainment Centre) and The Atrium@Orchard. We will soon kick off asset enhancement works at Iluma in November. This project is expected to improve the yield-on-cost of Iluma from 3.8 per cent to approximately 5.8 per cent upon completion of the exercise.’

RBS Equities Research said CMT is its top pick for the local Reit (real estate investment trust) sector, as it has a good retail portfolio and strong balance sheet.

‘We have a buy rating on CMT, with a TP (target price) of $2.19. The stock yields a decent 5.2 per cent and 6 per cent for FY11 and FY12 respectively, versus the commercial Reit average of 6 per cent and 6.4 per cent over the same period,’ it said.

CMT shares finished yesterday one cent down at $1.88.

Source: Business Times © Singapore Press Holdings Ltd

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